Chennai: India’s renewable energy transition has emerged as one of the world’s most significant clean-energy success stories, offering a compelling case study for South-East Asia on how a large developing economy can rapidly scale renewable power capacity while adapting its electricity system to new grid-balancing challenges, according to the International Energy Agency (IEA).The IEA said in its latest report that the West Asia conflict has created challenges for South-East Asia’s energy system. While measures are being taken to manage the immediate crisis, stronger policy action and deeper regional cooperation will be essential for long-term energy security.“While underlying conditions, challenges and governance landscapes differ across regions, India offers a case study on how it scaled up renewable power generation capacity and how its grid-balancing needs have evolved,” it noted.In 2025, India achieved its target of installing 50% non-fossil-fuel-based power generation capacity five years ahead of schedule. The milestone was driven largely by the rapid expansion of solar and wind energy, which together accounted for nearly three-fourths of all new power capacity added over the past five years.The achievement rests on three key pillars: ambitious long-term targets, a comprehensive policy framework and strong institutional support. The govt’s commitment to building 500 GW of non-fossil power capacity by 2030 provided a clear signal to investors, developers and manufacturers, creating a predictable growth trajectory for the sector.Supporting policies helped translate these targets into demand. Renewable Purchase Obligations, with clearly defined future trajectories, required power distribution companies to steadily increase renewable procurement. At the same time, Green Open Access Rules enabled commercial and industrial consumers to directly purchase renewable electricity from developers, broadening the market beyond traditional utility buyers. Production-Linked Incentive (PLI) schemes encouraged domestic manufacturing of solar modules and wind equipment, strengthening local supply chains.Public institutions also played a critical role in reducing investment risks and accelerating deployment. They provided concessional financing, refinancing and credit-enhancement support.India’s renewable energy success is not merely a story of capacity expansion. It is also a story of how electricity procurement evolved to address the changing needs of an increasingly renewable-heavy grid.The country’s auction framework has undergone a significant transformation over the past decade. What began as technology-specific tenders aimed at rapidly adding solar and wind capacity has gradually evolved into a system-oriented procurement model focused on delivering reliable and dispatchable clean power.“The focus has shifted from adding megawatts of renewable capacity to ensuring that clean power can be delivered when and where it is needed,” the IEA said.
